Australian Property Market Hits $11 Trillion as Growth Moderates
Australia’s property market has reached a significant $11 trillion milestone, marking a $900 billion increase over the past year. Despite this, whilst Western Australia remains the driving force, the pace of national property value growth has moderated, rising by just 1% in the September quarter—the slowest since early 2023.
Perth stands out, achieving the highest annual growth rate of 24.1% among Australian cities. Supported by strong demand and limited supply, Perth’s growth has outpaced other capitals, making it a top performer. New listings continue to increase, especially in major cities, helping ease market pressures, yet Perth’s sustained demand has kept values climbing steadily.
Perth’s Record Growth Amid National Trends
While Brisbane and Adelaide also saw impressive annual gains of 14.5% and 14.8% respectively, Sydney’s growth slowed to 4.5%. Melbourne and Hobart have yet to recover from their peaks, with values still below their highs from 2022.
In regional areas, growth has similarly slowed, with quarterly increases down to 1%. Nationwide, the increase in listings has led to a cooling in price growth, which benefits buyers. However, investor demand remains strong, representing 38.6% of new loan commitments, the highest since 2017. High investor activity, along with easing rental growth, shows a shifting market landscape, likely adding pressure for first-time buyers.
Market Indicators and Key Trends
- National property value has reached $11 trillion, highlighting the robustness of the market.
- Perth experienced the strongest price growth at all intervals: monthly, quarterly, and annually.
- Days on market increased slightly, indicating that properties are taking longer to sell, particularly in cities like Hobart and Darwin.
- New listings rose 2.1% year-on-year in early October, making this spring the busiest since 2021.
Looking Forward
As spring continues, we may see a slight moderation in value growth, giving buyers more options as listings increase. Perth’s market, however, remains one of the nation’s strongest, with ongoing high demand and a comparatively limited supply likely to drive further growth. With steady demand from investors and improving availability for buyers, Perth’s outlook remains bright, positioning it as a standout in the national market for future gains.
If you’d like to discuss what this means for your property or explore your options in this thriving market, please don’t hesitate to reach out. We’re always here to help you navigate Perth’s exciting real estate landscape.
Source: CoreLogic